The Pension Board of Worcestershire Council met on Friday 4 September 2026 to review the Worcestershire Pension Fund's Annual Report for the year ending 31 March 2026, and to discuss the Fund's Business Plan. The meeting also included updates on governance, compliance, communications, and training.

Pension Fund Annual Report for the Year Ended 31 March 2026

The Board was scheduled to review the Pension Fund's Annual Report for the year ending 31 March 2026. The report highlighted a successful year for the Fund, with net assets increasing by £536.4 million to £4,552.6 million. Key achievements noted included a 4.8% growth in scheme membership to 74,200 members and 206 participating employers. The actuarial valuation confirmed a funding level of 127%, an improvement from 101% in the 2022 valuation. The report also detailed strong investment returns of 14.7% for the year, matching the Fund's benchmark, and progress on responsible investment and climate-risk management.

The report indicated that the Fund is fully compliant with the Government's Fit for the Future reforms and the requirements of the Pension Schemes Act 2026. Investment implementation responsibilities have transferred to LGPS Central, supported by strengthened governance and oversight. The report also detailed strong pensions administration performance, with minimal backlogs and continued delivery of the McCloud remedy. Expansion of digital services, including Video Annual Benefit Statements, was also noted, with 51.2% of active members registered for the member portal.

The report recommended that the Board note and comment on the Annual Report and its accompanying summary.

Business Plan 2026/2027

The Board was scheduled to review the Worcestershire Pension Fund Business Plan for 2026/2027. This plan is designed as a comprehensive reference for activities within the Fund and the wider LGPS landscape. Amendments had been made to clarify how the Fund's structure supports its aims and objectives, and a work plan for 2026/2027 was detailed, covering Administration, Governance, and Investments.

Administration Updates:

• McCloud Remedy: Rectification work was progressing, with a focus on deceased members and awaiting guidance on pension sharing orders. The Fund aimed to complete implementation by 31 August 2025, with an extension agreed until August 2026.
• Pensions Dashboard Programme: The Fund had successfully implemented phase 1 and 2 of the Integrated Service Provider (ISP) implementation and received approval to connect to the ecosystem. Ongoing work focused on data quality and preparation for the dashboard going live.
• Survivor Pension Equalisation: Reports were being reviewed to identify members in scope, with work underway to identify survivors and establish contact.
• AVC Review: The Fund was awaiting findings from stage 2 and 3 of the AVC review by Hymans Robertson, with legal advice confirming no issues with transfers.
• Councillor and Mayor Access to LGPS: Access was provided from 11 May 2026, with forms, a website section, and a factsheet created.
• Year End / Annual Benefit Statements: Year-end data was being processed, with data cleansing nearing completion. Deferred Annual Benefit Statements were due to be sent on 11 June 2026, and Active statements on 18 August 2026.
• Fit for the Future Reforms: An Independent Person had been appointed, and recruitment for the LGPS Senior Officer role was underway.
• Local Government Reorganisation (LGR): Officers were assessing the impact of LGR on the Fund's governance, funding, employer, and administration arrangements.

Governance and Compliance Update:

• Good Governance: The Independent Person and LGPS Senior Officer roles had been filled. Procurement for Independent Governance Reviews was due to commence in early 2027.
• General Code Review: A review by Hymans Robertson indicated broad compliance with The Pensions Regulator's General Code, with areas for further strengthening identified.
• Cyber Security Review: An independent Cyber Impact Analysis and a cyber war game exercise had been conducted, with findings and recommendations under review to enhance cyber resilience.
• Policy Reviews: The Breaches of Law Policy and Personal Data Retention Policy had been reviewed and updated. The Under and Overpayment of Pension Benefits Policy was also presented.

Communications and Training Update:

• Communications: Annual Benefit Statements were on track for distribution. A member survey was launched to gather feedback on services. An investment survey was also being conducted, and the draft Investment Strategy Statement was out for consultation. Employer newsletters were being published regularly.
• Member Self-Service Portal: Registration levels showed a steady increase across active, deferred, and pensioner members.
• Training: Board and Committee members had access to the LGPS Online Learning Academy (LOLA) and were encouraged to complete modules. Pre-meeting training sessions were scheduled. A national knowledge assessment was anticipated for October/November 2026.

Risk Register: The Risk Register had been updated, with changes to the impact assessment of certain Compliance and Legal risks and amendments to the narrative for Engagement Effectiveness Risk 13.

Forward Plan: The Board was asked to comment on and approve the proposed Forward Plan, which outlines anticipated future reporting items, including investment governance, annual reports, funding strategy reviews, and regulatory updates.

The meeting was scheduled to include discussions on investment governance, the annual report, funding strategy, UK Stewardship Code compliance, the business plan, administration strategy, climate change risk, training, budget, risk register, governance updates, the independent person's role, and regulatory updates from the Scheme Advisory Board.

The meeting's information status was PENDINGCOUNCILPUBLICATION, meaning that while the agenda and reports pack were available, confirmation of the meeting's actual occurrence and any decisions made was not yet publicly confirmed by the council.